Insider Selling: Lumentum (NASDAQ:LITE) Insider Sells 1,500 Shares

Key Points

• Insider Yuen Wupen sold 1,500 Lumentum shares for approximately $1.24 million under a pre-arranged Rule 10b5-1 plan to cover tax withholding from vested equity awards. The insider retained 100,434 shares after the sale and also sold 500 shares the following day.
• Lumentum reported quarterly EPS of $3.23, beating estimates of $2.97, while revenue rose 109.3% year over year to $1.01 billion. Shares traded at $866.71, near their 52-week high, despite the company’s negative net margin.
• Analysts maintain a generally positive outlook, with 13 Buy ratings, six Holds and one Sell, producing a “Moderate Buy” consensus and an average price target of $1,044.67. Institutional investors and hedge funds own approximately 94.05% of the stock.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) insider Yuen Wupen sold 1,500 shares of the company's stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $827.82, for a total value of $1,241,730.00. Following the completion of the transaction, the insider directly owned 100,434 shares in the company, valued at $83,141,273.88. The trade was a 1.47% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Yuen Wupen also recently made the following trade(s):

• On Friday, August 21st, Yuen Wupen sold 500 shares of Lumentum stock. The stock was sold at an average price of $898.15, for a total transaction of $449,075.00.

Lumentum Price Performance

Shares of NASDAQ LITE traded down $12.57 during midday trading on Friday, reaching $866.71. The company's stock had a trading volume of 3,660,169 shares, compared to its average volume of 5,335,184. The company has a market cap of $77.74 billion, a P/E ratio of -10.54 and a beta of 1.50. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.40 and a current ratio of 1.68. The business's 50 day moving average price is $809.76 and its two-hundred day moving average price is $790.21. Lumentum Holdings Inc. has a fifty-two week low of $115.89 and a fifty-two week high of $1,085.68.

Lumentum (NASDAQ:LITE - Get Free Report) last announced its quarterly earnings data on Tuesday, August 11th. The technology company reported $3.23 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.97 by $0.26. The firm had revenue of $1.01 billion for the quarter, compared to the consensus estimate of $987.70 million. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The business's revenue for the quarter was up 109.3% on a year-over-year basis. During the same period in the prior year, the company posted $0.88 earnings per share. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. On average, analysts forecast that Lumentum Holdings Inc. will post 19.76 EPS for the current fiscal year.

Analysts Set New Price Targets

LITE has been the subject of a number of research reports. Barclays raised their price objective on shares of Lumentum from $750.00 to $1,000.00 and gave the company an "equal weight" rating in a report on Wednesday, May 6th. TD Cowen upped their price target on shares of Lumentum from $800.00 to $820.00 and gave the company a "hold" rating in a research report on Wednesday, August 12th. Loop Capital increased their price target on Lumentum from $900.00 to $1,400.00 and gave the stock a "buy" rating in a report on Tuesday, May 5th. Zacks Research lowered Lumentum from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 6th. Finally, Weiss Ratings downgraded Lumentum from a "hold (c-)" rating to a "sell (d-)" rating in a research note on Wednesday. Thirteen investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $1,044.67.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in LITE. Advisors Asset Management Inc. boosted its stake in Lumentum by 36.8% during the 1st quarter. Advisors Asset Management Inc. now owns 945 shares of the technology company's stock valued at $59,000 after purchasing an additional 254 shares during the last quarter. NewEdge Advisors LLC boosted its position in shares of Lumentum by 109.9% during the first quarter. NewEdge Advisors LLC now owns 11,986 shares of the technology company's stock valued at $747,000 after buying an additional 6,275 shares during the last quarter. Empowered Funds LLC boosted its position in shares of Lumentum by 9.1% during the first quarter. Empowered Funds LLC now owns 8,139 shares of the technology company's stock valued at $507,000 after buying an additional 680 shares during the last quarter. Hsbc Holdings PLC bought a new stake in Lumentum during the second quarter worth $298,000. Finally, Arrowstreet Capital Limited Partnership bought a new stake in Lumentum during the second quarter worth $1,712,000. 94.05% of the stock is currently owned by institutional investors and hedge funds.

Lumentum News Roundup

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Northland Securities raised its Lumentum earnings forecasts substantially. The firm lifted its FY2027 EPS estimate to $19.81 from $14.97, with quarterly estimates now ranging from $3.81 in Q1 to $6.20 in Q4. Northland maintained an “Outperform” rating and a $1,200 price target, supporting the bullish case for continued earnings growth. Northland Securities analyst estimate report
• Positive Sentiment: Lumentum is being highlighted as an AI-infrastructure beneficiary. Analysts and financial publications point to rising demand for optical networking equipment as data centers expand to support artificial intelligence workloads. Lumentum is positioned across the optics and networking portions of that buildout. Beyond Chipmakers: 4 Stocks to Buy That Power AI Data Center Expansion
• Positive Sentiment: LITE was added to Zacks’ Rank #1 momentum-stock list. The designation may attract momentum-oriented investors and reinforces the stock’s strong recent performance. Best Momentum Stocks to Buy for August 21st
• Neutral Sentiment: A report on data-center construction emphasized the enormous fiber requirements of new AI facilities, a potential long-term demand driver for optical-component suppliers such as Lumentum. However, the article provided limited company-specific financial updates. A Single Meta Data Center Will Require “8 Million Miles of Fiber”
• Negative Sentiment: Valuation concerns could be limiting further upside. A Seeking Alpha analysis characterized Lumentum as increasingly expensive after its sharp rally. With the shares near their 52-week high and the company still reporting a negative net margin, some investors may be taking profits despite the favorable growth outlook. Lumentum: It’s Getting Expensive

About Lumentum

Lumentum Holdings Inc, headquartered in San Jose, California, is a leading provider of photonic technologies that enable high-speed optical communication networks and advanced industrial applications. The company designs and manufactures a broad range of lasers, optical modules and subsystems tailored to the evolving requirements of telecommunications carriers, cloud data centers and enterprise networking.

Its core product portfolio includes tunable and fixed-wavelength laser transmitters, coherent optical engines, transceivers for long-haul, metro and data center interconnects, as well as test and measurement instruments.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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